- MAS commits up to S$100 million under FSTI 3.0 to enhance quantum and AI capabilities in the financial sector.
- Introduction of Quantum track to support financial institutions in building quantum technologies, including grants for technology centres, innovation, and security.
- New AI and data grant scheme under FSTI 3.0 to support development and deployment of AI technologies and industry-wide AI platforms.
- Collaboration with Institutes of Higher Learning and the Institute of Banking and Finance for talent development in quantum technology.
Main AI News:
The Monetary Authority of Singapore (MAS) has announced a strategic initiative to invest up to S$100 million under its Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0). This new funding aims to bolster quantum and artificial intelligence (AI) capabilities within the financial sector, marking a significant step towards advancing technological innovation and adoption in financial services.
Advancing Quantum Technology in Financial Services
Quantum technology is poised to revolutionize the financial industry with its transformative potential. In alignment with the National Quantum Strategy unveiled by Deputy Prime Minister Heng Swee Keat in May 2024, MAS will introduce a Quantum track within FSTI 3.0. This track is designed to support financial institutions in developing quantum capabilities in Singapore.
The Quantum track includes several grants:
- Technology Centres Grant: This grant supports the establishment of quantum computing and security functions in Singapore, offering up to 50% funding for manpower and other related expenses such as infrastructure and software over a 24-month period.
- Technology Innovation Grant: This comprises two sub-tracks. The first focuses on developing impactful institutional use cases, while the second supports strategic solutions for industry-wide challenges. Both sub-tracks offer up to 50% co-funding to advance quantum technology solutions.
- Security Grant: Aimed at enhancing cybersecurity for the quantum era, this grant provides up to 30% funding for projects exploring Post-Quantum Cryptography (PQC) and Quantum Key Distribution (QKD) to protect critical data.
MAS will also collaborate with Institutes of Higher Learning and the Institute of Banking and Finance to foster talent development in quantum technology.
Enhancing AI Adoption in Financial Institutions
AI adoption has been accelerating among financial institutions, driven by recent technological advancements and the rise of Generative AI. To further support this trend, MAS will enhance the existing AI and data grant scheme under FSTI 3.0. The updated scheme will focus on:
- Development and Deployment of AI Technologies: MAS aims to position Singapore as a hub for AI excellence by supporting the establishment of AI innovation centers. These centers will focus on AI model development, deployment, governance, and monitoring.
- Industry-Wide AI Platforms: To tackle broader industry challenges, MAS will support the development of AI platforms for secure data exchange and collaborative problem-solving. The first pilot project will address scam and fraud detection, involving banks, technology providers, and public agencies.
This funding initiative underscores MAS’s commitment to driving innovation and enhancing capabilities in the financial sector through cutting-edge quantum and AI technologies. For more information on the FSTI 3.0 Quantum track, visit the MAS website.
Conclusion:
MAS’s substantial investment in quantum and AI technologies signals a robust commitment to positioning Singapore as a leader in financial technology innovation. By providing targeted grants for quantum computing, security, and AI applications, MAS is not only advancing individual institutional capabilities but also fostering collaborative industry-wide solutions. This strategic funding will likely accelerate technological adoption, enhance the competitive edge of Singapore’s financial sector, and potentially attract global technology firms to the region. The emphasis on both quantum and AI reflects a forward-looking approach that aims to future-proof the financial industry against evolving technological and security challenges.
